Foreign Trade Division Jerry Greenwell, Chief Regulations, Outreach and Education Branch

Today’s Topics Recent Regulatory Changes Effecting Exports Rewrite of the Foreign Trade Regulations (FTR) Notable Proposed FTR Changes Trade Act of 2000 Proposed Schedule

Recent Regulatory Changes Mandatory Filing for USML and CCL Shipments (July 17, 2003) Mandatory Filing For Conflict Diamonds (October 20, 2003) Full Mandatory AES Program Notice (October 22, 2003) ITAR – Mandatory AES for USML items (October 27, 2003) Required Advance Electronic Presentation of Cargo Information (December 5, 2003)

Full Mandatory AES Filing Public Law , “ Security Assistance Act of 2002” Requires filing of all other export shipments in AES No paper Option (SED will become obsolete) Increased Penalties

FTSR CHANGES  The SED will be Electronic Export Information (EEI)  The FTSR will be Foreign Trade Regulations (FTR)  Option 2 will be called Pre-departure  Option 4 will be called Post-departure  The regulations will be re-numbered

FTSR Changes  Trade Act of 2000 inclusions:  Pre-departure filing prior to tendering the cargo to the carrier, but….  For air, no later than 2 hours prior scheduled departure time  For rail, no later than 2 hours prior to the time the train arrives at the border  For vessel, no later than 24 hours prior to departure of the vessel  For truck, no later than 1 hour prior to the arrival of the truck at the border.

FTSR Changes  Trade Act of 2000 inclusions:  The Proof of Filing Citation that includes the Internal Transaction Number (ITN) must be shown on the air waybill, bill of lading or other commercial documentation.

FTSR Changes Penalty Provisions Delegation of Authority – Enforcement Civil Penalty Criminal Penalty Mitigation

Proposed Schedule June 2004 – Notice of Proposed Rulemaking August 2004 – All comments received October 2004 – Complete response to comments and publish final rule January 2005 – Final Rule becomes effective

Foreign Trade Division EXPO Regulations AES Commodity Classification Analysis Local Customs and Border Protection Locations April – New York May – Salt Lake City June – Minneapolis September – Philadelphia October – Dallas November – Santa Fe

Foreign Trade Division Regulations, Outreach and Education Branch Jerry Greenwell O (301) F (301)